Your home's foundation is one of the most vital components of your property. Responsible for bearing the load of your entire home and holding your house in place, foundation damage like cracks can cause significant damage to the structural integrity of your home, leading to safety issues and expensive repair costs. If it's your first time buying home insurance, you may have questions about whether your insurance policy will cover foundation issues. To learn more about whether your homeowners insurance will cover foundation repair services, stick around to find out!
Will my insurance company cover foundation repair services?
The truth is, that your home insurance provider will cover foundation cracks if the damage to your home's foundation is caused by a covered peril listed in your specific policy. While the specifics of your homeowners insurance will vary between providers, commonly covered perils include the following:
- Fire damage
- Certain weather damage like high winds.
- Theft and vandalism.
- Falling objects.
- Explosions.
- Car damage or aircraft damage.
- Water damage from your home's plumbing, heating, or air conditioning systems.
Let's say during a wind storm, a tree from your neighbour's yard falls onto your property, causing foundation damage to your home. Because weather damage is a covered peril in most homeowners insurance policies, you'll likely receive coverage from your insurance company.
In contrast, if you fail at performing regular maintenance around your property and your foundation problems arise from a lack of maintenance on your part as a homeowner, there's a high possibility your homeowners insurance policy will not cover foundation issues as your lack of maintenance, could invalidate your homeowners insurance policy. An exception to this rule is if you have partial coverage. For example, some home insurance covers plumbing issues that cause foundation issues but do not agree to settlements as an alternative. Make sure to read your policy to determine what is and isn't covered.
Note that you do have some options available to you. For example, to ensure you're covered by further perils beyond those included in your standard insurance policy, you can add optional endorsements to your plan, such as overland flood insurance and sewer backup coverage for more peace of mind. But remember, your average home insurance cost will increase annually by opting for these add-on policies.
What are the most common causes of foundation damage?
Numerous instances can lead to foundation damage and costly foundation repairs. Knowing these common causes can help you prevent foundation damage in your home:
Poor construction
If you have a new build, poor construction performed by illegitimate contractors can put you at risk of foundation damage. Should you build your home from scratch, make sure you do your research and partner with a reputable construction company to ensure that your property is constructed correctly and by local building and safety codes to prevent defective construction results.
The same goes for home renovations. Foundation damage caused by poor renovations and faulty construction can also lead to costly repairs that could otherwise have been prevented. To ensure your home renovation runs smoothly and to avoid foundation issues, check out our renovating house checklist for more information and don't forget to conduct your own third-party home appraisal and inspection if you're considering purchasing a home.
Flooding
According to Allstate, water damage is one of the leading causes of property damage in Canada, with approximately $2 billion in damages each year. Whether due to overland flooding in the area or flooding within your home caused by poor plumbing or other issues, foundation damage caused by flooding is one of the main reasons homeowners deal with structural defects. Surface water that pools in your yard can seep through the soil and into the concrete that forms your foundation. Over time, the water can create these cracks that necessitate foundation repairs.
Tree roots
Tree roots grow toward water. If you have large trees in your front and back yard and there is excess water pooling around your home, the roots will grow towards it. Once this occurs, the roots can grow further, penetrating your home's foundation and causing deep fissures within the concrete.
Earth movement
A final cause of foundation damage is natural disasters that cause soil movement and soil erosion. Earth movements that cause shifting soil can impact the integrity of your foundation, causing damage and costly foundation repairs that are often out of pocket unless you have purchased a separate policy like earthquake insurance from home insurers.
Foundation repair experts from Arch Foundation Repair recommend sloping the soil around your property by at least 6 inches to help divert water away from your foundation. Installing French drain systems is also suggested.
Signs of foundation damage
Most foundation damage can be avoided with preventive measures. Likewise, knowing the early warning signs of foundation problems can also prevent your foundation damage from getting worse and prevent home insurance claims. Here is how you can notice foundation damage in your home:
Sagging floors
Sagging or uneven floors often point to earth movement that has shifted your home out of its correct position.
Cracks in your walls and ceiling
Foundation damage can also be diagnosed by cracks in your walls, ceiling, and pavement around your home.
Mould and mildew
Mould and mildew growth is often caused by water damage on walls and ceilings. This water damage can be indicative of a more serious foundation issue that may necessitate a homeowners insurance claim. Note that whether your home insurance covers mould damage will depend on your specific policy.
Doors and windows won't close
Sometimes, when your foundation moves, the doors and windows throughout your home will have difficulties closing as your home has shifted, causing a misalignment.
If you notice these signs in your home, you're likely dealing with foundation damage. We recommend getting your foundation inspected by a professional before filing an insurance claim with your provider.
When is foundation damage not covered by my homeowner's insurance?
As we mentioned, there are many instances where your homeowners insurance will cover foundation damage. However, foundation issues caused by the following are often not considered a covered event:
- Normal wear and tear of your property: All home's age. If your foundation damage results from your home getting older and normal wear that all homes experience, your foundation issue will not be covered by your homeowners insurance.
- Homeowner neglect: It's the homeowner's responsibility to maintain their property over the years. If your foundation damage is a result of your neglect, it will not be covered by your provider. For example, your insurance company won't cover appliances with general wear or tear.
- Poor workmanship or construction: Unfortunately, if you do not have coverage for your renovation or construction project, your homeowner's claim will likely be denied.
- Foundation damage caused by vermin or insects: Pest infestations are not covered by homeowners insurance. These again are considered maintenance issues and are not foundation issues that are covered by standard homeowners insurance.
- Soil expansion: Unless you have earthquake insurance, foundation damage that results from soil movements will not be covered by your homeowners insurance.
How to prevent foundation damage
Foundation issues can lead to expensive foundation repair services when not taken care of correctly. Luckily, there are ways you can prevent foundation issues and avoid having to go through a complicated claims process with your homeowners insurance provider. To prevent foundation issues, here's what you need to do:
- Avoid flooding: To prevent flooding in and around your home, divert water away from your property by installing a sump pump and backwater valve and cleaning your gutters every couple of months.
- Install drainage systems: Exterior drainage systems like French drains can help prevent water from pooling in your yard during rainy seasons. If you're able to do so, consider having one professionally installed to prevent further issues from occurring.
- Get a regular home inspection: Regardless of whether your home is brand-new or not, getting a routine home inspection each year can help you identify problems before they turn into serious foundation issues.
- Check your soil: Maintaining the soil around your home is also essential if you want to avoid foundation issues. The goal is to prevent the soil from being too dry and too wet. You can do so. by hiring professional landscapers throughout the year.
- Water soil in summer: If you don't want to hire a landscaper, you can water the soil around your foundation in the summer to prevent it from becoming too dry.
- Tend to your trees: To avoid tree root invasions into your foundation, maintaining your trees and other greenery around your property is necessary. Again, hiring a landscaper can help you prevent foundation issues that arise from your plants.
- Waterproof your foundation: Foundation waterproofing is a technique that involves applying a waterproof membrane to the interior and exterior portions of your home's foundation, along with installing a drainage system.
Not all foundation damage can be prevented. But, with the right steps, you can actively avoid issues from popping up over the years that require you to file a claim with your insurance provider. Remember, the more claims you file, the higher your insurance costs will be. So, aiming to prevent damages with ongoing maintenance is key.
How to file a claim under your home homeowners insurance for foundation problems
If you notice foundation damage around your home, you'll need to file a claim under your home insurance policy. Here's what you'll need to do:
- Document the damage: First, you'll need to document your foundation problems. Take as many photos and videos as possible, as you'll need to submit this evidence to your insurance adjuster.
- Look at your policy: Next, double-check your homeowner's insurance plan to confirm that it will cover house foundation repair costs. Once confirmed, you can go ahead and contact your insurance company and open a claim.
- Get repair estimates: Now that your claim is open, your adjuster will have you work with a contractor who is responsible for estimating the damages to your foundation. Once an estimate is provided, you'll be able to go ahead and have your foundation repaired.
- Get compensated: Finally, as the repairs are completed, your insurance provider will compensate you for the cost of repairs needed. They will either e-transfer money directly into your bank account or send a certified cheque in the mail for you to deposit.
Standard home insurance
Standard homeowners insurance can be divided into two main policies:
Third-party liability home insurance
Liability coverage protects homeowners in the event someone is injured on their property or if they cause property damage to a third party. For example, if a tree from your yard falls and damages your neighbour's home. With this coverage, any medical expenses, repairs, replacements, and legal fees that arise from a claim will be covered up to your coverage limits.
Property damage home insurance
Property damage coverage, also known as dwelling coverage protects the physical structure of your home if it is damaged by a covered peril. The specific perils will vary between providers and policies. However, the most common ones included in a standard policy are fire damage, high winds, theft, vandalism, and explosions.
Add-on home insurance policies
If you want to supplement your homeowners insurance, adding optional coverages to your overall insurance plan can help provide you with more peace of mind knowing that your home and investment are protected from certain perils. Here are some policies you may want to consider the next time you're up for an insurance renewal:
Sewer backup coverage
Sewage backup is often caused by flooding, poor plumbing, and other issues that overwhelm your home’s main sewer line, leading to flooding in your basement or crawlspace that can cause significant damage and health concerns. Sewer backup coverage protects homeowners in the event their home is damaged as a result of sewer backups.
Flood insurance
Flood insurance is a type of optional homeowner's insurance that homeowners may wish to consider. If you live by a body of water or high in the mountains where flooding is common, overland flooding insurance will pay for damages that result from floods in your area. It's important to note that standard homeowner's insurance does not typically cover overland floods.
Contact BrokerLink for affordable home insurance
For many homeowners in Canada, their property is one of the biggest investments they've made in their lifetime. Whether or not you're a first-time home buyer, protecting your home from unanticipated perils is a necessity.
At BrokerLink, we help Canadians find affordable insurance coverage based on their unique requirements and budget. Beyond a standard home insurance policy, our team can help you acquire the following types of home insurance:
To learn more about the insurance you need and the options available to you, feel free to come visit us in person at one of our many locations across Canada! If we're not in your neighbourhood, you can also reach us over the phone.
Alternatively, if you're browsing for coverage options, take advantage of our free online quote tool for a competitive insurance quote calculated in minutes!
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